Finance Act 1989

178 Setting of rates of interest. U.K.

(1) The rate of interest applicable for the purposes of an enactment to which this section applies shall be the rate which for the purposes of that enactment is provided for by regulations made by the Treasury under this section.

(2) This section applies to—

[F1 (aa) section 15A of the Stamp Act 1891;]

(a) section 8(9) of the M1 Finance Act 1894,

(b) section 18 of the M2 Finance Act 1896,

(c) section 61(5) of the M3 Finance (1909-10) Act 1910,

(d) section 17(3) of the M4 Law of Property Act 1925,

(e) section 73(6) of the M5 Land Registration Act 1925,

(f) [F2 sections 59C, 86, 86A, 87, 87A, [F3 88], 103A] of the M6 TaxesManagement Act 1970,

(g) paragraph 3 of Schedule 16A to the M7 Finance Act 1973,

[F4 (gg) [F5 paragraph 6 of Schedule 1 to the Social Security Contributions and Benefits Act 1992],]

[F6 (gh) section 71(8A) of the M8 Social Security Administration Act 1992, and section 69(8A) of the M9 Social Security Administration (Northern Ireland) Act 1992, as they have effect in any case where the overpayment was made in respect of working families’ tax credit or disabled person’s tax credit;]

(h) paragraphs 15 and 16 of Schedule 2, and paragraph 8 of Schedule 5, to the M10 Oil Taxation Act 1975,

F7 [(i) section 283 of the M11 Taxation of Chargeable Gains Act 1992;]

(j) paragraph 59 of Schedule 8 to the M12 Development Land TaxAct 1976,

(k) sections 233 and 236(3) and (4) of the M13 Inheritance TaxAct 1984,

(l) section 92 of the Finance Act 1986, and

(m) sections [F8 118F] 160, 824, 825 and 826 of, [F9 and paragraph 6B of Schedule 3 to] and paragraph 3 of Schedule 19A to, the M14 Taxes Act 1988. [F10 and]

F11 (n) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .[F12 and

(o) section 14(4) of the Ports Act 1991.]

[F13 (p) paragraph 8 of Schedule 4 to the Tax Credits Act 1999.[F14 , and]

(p) section 110 of the Finance Act 1999.]

(3) Regulations under this section may—

(a) make different provision for different enactments or for different purposes of the same enactment,

(b) either themselves specify a rate of interest for the purposes of an enactment or make provision for any such rate to be determined by referenceto such rate or the average of such rates as may be referred to in theregulations,

(c) provide for rates to be reduced below, or increased above, what theyotherwise would be by specified amounts or by reference to specified formulae,

(d) provide for rates arrived at by reference to averages to be rounded up ordown,

(e) provide for circumstances in which alteration of a rate of interest is oris not to take place, and

(f) provide that alterations of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relationto interest running from before that day as well as from or from after thatday.

(4) The power to make regulations under this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of aresolution of the House of Commons.

(5) Where—

(a) the rate provided for by regulations under this section as the rateapplicable for the purposes of any enactment is changed, and

(b) the new rate is not specified in the regulations,

the Board shall by order specify the new rate and the day from which ithas effect.

(6) In section 828(2) of the Taxes Act 1988 (powers to make orders which arenot exercisable by statutory instrument) the words “or section 178(5)of the Finance Act 1989” shall be added at the end.

(7) Subsection (1) shall have effect for periods beginning on or after such day as the Treasury may by order made by statutory instrument appoint and shall have effect in relation to interest running from before that day as well as from or from after that day; and different days may be appointed for different enactments.

Textual Amendments

F1 S. 178(2)(aa) inserted (27.7.1999 with application to instruments executed on or after 1.10.1999) by 1999 c. 16, ss. 109(2)(4), 123(4)

F2 Words in s. 178(2)(f) substituted (1.9.1994 with effect as mentioned in s. 199 of the amending Act) by 1994 c. 9, s. 196, Sch. 19 Pt. III para. 44; S.I. 1998/3173, art. 2

F3 Words in s. 178(2)(f) repealed (29.4.1996 with effect as specified in Sch. 18 para. 17 of the amending Act) by 1996 c. 8, ss. 132, 205, Sch. 18 para. 13, Sch. 41 Pt. V(8), note

F4 S. 178(2)(gg) inserted (6.4.1992) (E.W.S.) by Social Security Act 1990 (c. 27, SIF 113:1) s. 17(10); S.I. 1992/632, art. 2

F5 Words in s. 178(2)(gg) substituted (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), ss. 4, 7(2), Sch. 2 para. 107

F6 S. 178(2)(gh) inserted (5.10.1999) by 1999 c. 10, ss. 2, 20(2), Sch. 2 Pt. IV para. 10(2)

F7 s. 178(2)(i) substituted (in relation to tax for the year 1992-1993 and subsequent years subject as mentioned in s. 289 of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 19(4) (with ss. 60, 101(1), 171, 201(3))

F8 Words in s. 178(2)(m) inserted (29.4.1996) by 1996 c. 8, s. 156, Sch. 29 para. 8

F9 Words in s. 178(2)(m) repealed (29.4.1996 with effect as mentioned in Sch. 7 paras. 32-35 of the amending Act) by 1996 c. 8, ss. 79(2), 205, Sch. 7 para. 30, Sch. 41 Pt. V(2), note

F10 “and” inserted by Finance Act 1990 (c. 29, SIF 58), s.118(8)

F11 S. 178(2)(n) repealed (1.5.1995) by 1995 c. 4, s. 162, Sch. 29 Pt. XII

F12 S. 178(2)(o) and word immediately proceeding it inserted (G.B.) by Ports Act 1991 (c. 52, SIF 58), s. 14(5).

F13 It is provided that s. 178(2)(p) shall be inserted (5.10.1999) by 1999 c. 10, ss. 10(4), 20(2), Sch. 4 para. 8(1)

F14 S. 178(2)(p) and word “and” preceding inserted (27.7.1999 with application in relation to instruments executed on or after 1.10.1999) by 1999 c. 16, ss. 110(9)(10), 123(4)

Modifications etc. (not altering text)

C1 S. 178 applied by Ports Act 1991 (c. 52, SIF 58), s. 14(4).

S. 178 applied (27.7.1993) by 1993 c. 34, s. 173, Sch. 19 Pt. II para. 11(4)

S. 178 applied (1.9.1994 with effect as mentioned in s. 199 of 1994 c. 9) by 1970 c. 9, s. 59C (as inserted by 1994 c. 9, s. 194); S.I. 1998/3173, art, 2

S. 178 applied (1.5.1995) by 1995 c. 4, s. 157(6)

S. 178 extended (1.5.1995) by 1995 c. 4, s. 157(6)

S. 178 applied (31.7.1997) by 1997 c. 58, s. 3, Sch. 2 para. 12(4)

S. 178 applied (27.7.1999 with application to instruments executed on or after 1.10.1999) by 1891 c. 39, s. 15A(3) (as substituted (27.7.1999 with application to instruments executed on or after 1.10.1999) by 1999 c. 16, s. 109(1)(4))

S. 178 applied (27.7.1999 with application in relation to instruments executed on or after 1.10.1999) by ss. 110(1)-(5)(10), 123(4)

S. 178 applied (5.10.1999) by 1999 c. 10, ss. 10(4), 20(2), Sch. 4 para. 8(2)

S. 178 applied (1.4.2000) by S.I. 2000/944, art. 25

S. 178 applied (1.4.2000) by S.I. 2000/944, art. 41(1)

S. 178 applied (1.4.2000) by S.I. 2000/944, art. 46(1)

C2 For regulations see S.I. 1989/1297 (inPart III Vol. 5).And see Tables Iand O Vol. 1

C3 Power of appointment conferred by s. 178(7) partly exercised: 18.8.1989 appointed by S.I. 1989/1298 for all the enactments specified in s. 178(2) other than s. 87A of the 1970 Act and s. 826 of the 1988 Act

Marginal Citations

M1 1894 c. 30.

M2 1896 c. 28.

M3 1910 c. 8.

M4 1925 c. 20.

M5 1925 c. 21.

M6 1970 c. 9.

M7 1973 c. 51.

M8 1992 c.5.

M9 1992 c.8.

M10 1975 c. 22.

M11 1992 c. 12.

M12 1976 c. 24.

M13 1984 c. 51.

M14 1986 c. 41.